Is Simplx A Scam? Dropshipper Be Weary
January 14, 2009 by Pablo Palatnik
Dropshipping has got to be one of the best concepts out there to get started selling online and actually make some money IF you find the right droppershipper.
As defined by Wikipedia and some information on drop shipping:
Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer. As in all retail businesses, the retailers make their profit on the difference between the wholesale and retail price.
The Benefits:
Two main benefits of drop shipping are – no upfront inventory to purchase and a positive cash flow cycle. A positive cash flow cycle occurs because the seller is paid when the purchase is made. The seller usually pays the wholesaler using a credit card or credit terms. Therefore, there is a period of time in which the seller has the customer’s money, but has not yet paid the wholesaler.
Other benefits of drop shipping include:
**Eliminates duplication of effort as only one warehouse will pick, pack and ship the product thereby reducing costs in the supply chain.
**Reduces total inventory management and shipping costs which can be passed on to the customer by the retailer.
If you could find the right drop shipper you could make some good money if you’re a good online marketer and know exactly what channels will suit your product. The MAIN problem with this concept and business tactic if actually finding a drop shipper.
This company has caught my attention because they are becoming or known as the largest drop shipper out there, that is SIMPLX.
I couldn’t tell you from personal experience about this company but I did inquire once and I did talk to a rep. I never quite understood why these companies charge fee’s when you’re willing to give them business. Drop shipping isn’t easy on the company providing the service but a fee is just a way to really un-interest someone from doing any type of business. We all know how small the margins can be when drop shipping a product so any additional fee’s are a total turnoff.
>>WHAT DO YOU THINK ABOUT THIS TOPIC? COMMENT AT THE BOTTOM OF THIS POST<<
When researching the company a bit further I came across a thread on Scam.com (yeah, I know, a deff red flag, right?) and here are what some people are saying:
"...Simplx is definitely a scam! What kind of company charges $20 to tell you about thier product. They should be paying you!"
"I am a little suprised to hear these things about Simplx. I personally have been using them and making a lot of money. However, because there are a few people with other ideas on here, I am going to investigate further as I don't want to be involved with a company if it does these things. I am anxious to find out if these claims are legit, or if it's from a few random people that didn't make money online and are bitter about it."
"I was actually investigating this company because my son wanted me to sign him up. I will take a little longer now that I have read so much negative info on simplx now."
You can read further in the thread here.
From an eBay blogger:
“Yes, I got scammed by these people. Which sucks because I was just starting to enjoy selling things on Ebay. It’s fun, but i figured I could get into this “dropshipping” business people keep mentioning. I wanted to find a wholesale dropshipper, and I ended up with a loss of $250. Simplx.com is NOT A DROPSHIPPER! they are an affiliate network, and they offer you NOTHING that isn’t already free to the public. For this, they charge you $250 plus $35 a month. WOW. I really wish I had done more research before joining the site, because they aren’t just a scam, they are an ESTABLISHED scam at this point. Well, there ya go. Another pissed off SIMPLX.COM victim.”
So, I posted this in case you’re looking into Simplx. Again, I do not and never have used this company so I’m blogging based on what is already written online after taking a little interest in how they work.
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Comments (4)
Hi,
I am the CEO of Simplx and I found your blog about drop shipping and Simplx. I posted a statement regarding a lot of the negative statements and claims online about Simplx that I think you would be interested in reading. You can find it here:
http://blog.simplx.com/is-simplx-a-scam/2009/09/16/
I am a former employee of this company. They are not a scam. However, they are charging for a service that you really could find other places for a lot less. In fact Commission Junction, and a lot of light will be shed on what these guys are doing. Really, they are reselling an affiliate service that you can get somewhere else. They claim that it’s their technology…. no.
I would not say that they are a scam, though, as you really can make money using their system and products. In fact there are some people that are making a lot of money using them.
They are scam with D+ rating on BBB
I thought this was a drop shipper… no it is affiliated marketing…. but you only get a small percentage… they take your profit. I am sorry when you say drop shipping… and then people pay… then it changes to affiliated marketing… That is a scam. Period
SCAM